CINCINNATI, Feb. 28, 2011 (GLOBE NEWSWIRE) -- Attorney Advertising -- The law firm of Statman, Harris & Eyrich, LLC, which has significant experience in class actions, announced today that it is investigating Broadwind Energy, Inc. ("Broadwind" or the "Company") (Nasdaq:BWEN) for potential violations of state and federal securities laws in connection with the Company's March 12, 2010 secondary stock offering.
The firm's investigation relates to allegations contained in two separate shareholder lawsuits commenced in the United States District Court for the Northern District of Illinois regarding the misconduct of the Company and certain of its officers and directors. Specifically, those lawsuits allege that the Company and certain of its officers violated federal securities laws by failing to disclose material adverse facts about Broadwind's true financial condition, such as: (i) disclosing issues with key contracts of Broadwind's RBA subsidiary; (ii) overstating the Company's financial condition by improperly delaying the recognition of the impairment of goodwill and intangible assets related to its RBA subsidiary; (iii) failing to prepare the Company's financial statements in accordance with GAAP; and (iv) disclosing the reduction in customer demand. As a result of these factors, defendants lacked a reasonable basis for their positive statements about Broadwind's financial condition.
On August 9, 2010, the Company announced its financial results for the second quarter of 2010. Following the news of a net loss of $14.2 million, the price of Broadwind stock fell 12%, to close at $2.50 per share.
Shareholders who purchased Broadwind stock in connection with the Company's March 12, 2010 stock offering may have a claim against the Company and are encouraged to contact attorney Melinda Nenning at (513) 345-8181, Ext. 3095 or mnenning@statmanharris.com for further information without any obligation or cost to you.
Statman, Harris & Eyrich, LLC has offices in Chicago, Illinois; Cincinnati, Ohio; and Dayton, Ohio. www.statmanharris.com